Paris terror attacks: Market response

The Islamist militant group that calls itself "Islamic State" claimed responsibility for the attacks. France responded at the weekend by launching air strikes against IS targets in Syria.

Travel and leisure stocks were the worst hit—finishing down 1.4 percent as a sector—as markets opened Monday morning as investor confidence took a hit after Friday's attacks. Travel agent, Thomas Cook closed down 4.8 percent, while Eurotunnel fell 3 percent by the close.

French hotel group Accor ended trade 4.7 percent down, making it the worst performer on France's CAC index, and luxury goods brands LVMH and Kering were also among the worst performers, closing trade 1.4 percent and 0.7 percent lower respectively.

Oil prices under pressure

Despite a lower open, revised inflation data helped offset European markets slightly, as data showed the rate of price growth in the euro zone was 0.1 percent in October, up from an initial reading of zero.

Oil stocks bucked the trend on Monday, following a sharp selloff in the previous week. Seadrill led the top of the STOXX 600, ending up 7.5 percent, while Petrofac and Tullow Oil also closed sharply higher, both up 2.8 and 3.2 percent respectively.

While geopolitical concerns helped boost oil on Monday, prices came under sharp pressure from global crude glut concerns in later trade. Economic impact following the Paris attack added to investor woes. Brent crude prices dipped $1.22 to $43.23, while U.S. crude dipped slightly, down at $40.23 a barrel around the close.

At the bottom of markets, Swiss firm Sonova fell 7.8 percent after cutting its sales and profit forecasts due to several factors including weak cochlear implant sales and sluggish business with U.S. veterans, Reuters reported.